Founder’s Stock

Founder’s Stock is the equity (often common stock) issued to founders at or near formation, typically at a very low purchase price and often subject to vesting and repurchase rights. In financings and exits, Founder’s Stock terms matter for cap table math, tax planning (e.g., 83(b) elections), and how much value accrues to the founding team.

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Ryan Roberts Startup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.